Principles of International Environmental Law - Assignment Example

Oil supply companies did not observe international human rights, for example, and Royal Dutch Shell Pell funded paramilitary groups (Sands 328).

Pellian government has the full right to expropriate oil because they observe the environmental conversation. The government does not allow the spilling of toxic chemicals into the villages. They play their role as citizen’s watchdogs.

The appropriate level of compensation the Pellian government has to offer should exceed the profit earned in that financial year. BIT rules state that a firm should pay the compensation immediately. The government has to offer AmeriGas immediately on the day of expropriation. This is by international law. BIT rules protect other minor oil corporations from exploitation by major oil firms. Compensation covering profits and capital is the best model to clear expropriation. Under the bilateral treaty; the Pellian government offered $65 million in compensation to AmeriGasCo. This was a reflection of the profits earned (Sands 372).

The fee imposed upon chip manufacturing operations is not consistent with the treatment obligations under BIT. The fee is less than the fair market value. Bilateral treaty advocates for reasonable rate fees that could match the economy, from the date of expropriation. Firms spend money on microchips, which is against the conditions of BIT.